The Philippines is looking to go public with its indigenous intelligence (AI) agency in two years, the Bases Conversion and Development Authority (BCDA) said.
“This will be done in phases. Within the first 2 years, we will be able to at least complete the first phase of development,” said BCDA President and Chief Executive Officer Joshua M. Bingcang in a press conference on Friday.
Earlier this week, the BCDA announced that it has allocated 4,000 hectares (about 1,618 hectares) within the City of New Clark in Tarlac to build an indigenous AI industrial zone to support the development of the AI supply chain ecosystem here.
The center will host the Pax Silica Coordination Office for technology companies, research institutes, and government agencies. The site will be designated as a “Golden Node,” or a new model for AI-native investment acceleration hubs.
“This will be a draw for all other industries to come. Therefore, it will be a place for industrial development,” said Mr. Bingcang.
He said this place will not be limited to Americans only.
Commerce Undersecretary Ceferino S. Rodolfo told reporters that this development will advance the role of the Philippines in the AI system to supply the world’s environment.
“There are countries and certain companies in the production of AI-tech, in the transition of energy, and in infrastructure that have reached to express the importance of Pax Silica in their investment plans,” he said, revealing the interest of five companies from East Asia and America.
Mr. Bingcang noted that investors will build the appropriate infrastructure, roads, and facilities for the AI-native hub, subject to BCDA’s approval.
Under BCDA’s proposal to the US government, the agency will offer a two-year grace period on property lease payments, serving as an unconditional donation to support the program.
In the third year of the agreement, the annual rental rate will be included in a separate agreement.
Upon the expiration of the initial term of the lease, the lease shall be renewed upon the mutual written consent of the Philippine and US governments, on such terms as may be mutually agreed upon at that time.
The property shall revert to the Philippine government upon termination or expiration of the lease.
Both countries still agree on the costs associated with construction, clothing, operation, maintenance, and employment; and the precise location, boundaries, and legal description of the property.
The wardens of the institution shall be given financial and non-financial incentives under Republic Act (RA) No. 12066 or Business Recovery and Business Tax Benefits to Increase Opportunities for Economic Revitalization; RA 7916 or the Special Economic Zone Act, and RA7277 or the BCDA Charter.
“Furthermore, it is understood that the acceptance of this offer by the United States, especially in the relevant provisions related to cash contributions (ie, grace period in the lease), will be done in accordance with the laws and regulations of the United States, including 22 US Code § 2697 and the applicable provisions of the Foreign Affairs Manual,” BCDA said in its proposal.
The Tarlac office will serve as a “bilateral focal point” for the coordination of critical security measures for mineral procurement between the Philippines and the US; promoting the strategic planning of industrial cooperation and infrastructure development within the Luzon Economic Corridor; and co-ordinating joint investment and mobilizing private funds for economic security projects.
It will also support workforce development, technology transfer, and capacity building activities consistent with bilateral economic security objectives; and other activities.
The hub coincides with the official entry of the Philippines into the Washington-led Pax Silica initiative, which aims to link AI, semiconductors, precious minerals, and advanced manufacturing. – Beatriz Marie D. Cruz
